You will come across specific terms in these notes (FLD, VTL, and so on). Rather than explain them each time, you will find definitions here: guidance notes for Hurst cycles terminology
FTSE 100 – closing in on a 40 day cycle trough.
FTSE 100 is close to a 40 day cycle trough which is due out to the first week of October. Price has just penetrated below the 20 day FLD and the downside projection is roughly 7,515 or around the uptrending 20 day VTL. Despite the current sell off the overall complexion of the chart is bullish. The evidence for that is that the 40 day cycle peak came in at 7,745 versus the 40 day FLD projection of 7,645 (100 points higher) and the peak came in very right translated (late). These are driven by a new 40 week cycle that started up in mid-late August. We are therefore anticipating a short pullback and uptrend resumption.
This post was first published on Hurst Cycles Notes.
